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Runwal Developers Limited, promoted by Sandeep Runwal, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a proposed Initial Public Offering (IPO) worth ₹2,000 crore.

The IPO comprises a fresh issue of ₹1,700 crore and an offer for sale (OFS) of ₹300 crore by promoter Sandeep Subhash Runwal. Each equity share will have a face value of ₹1.

Utilization of Proceeds

  • Up to ₹1,300 crore will go towards prepayment/repayment of borrowings by Runwal Developers and its subsidiaries including Runwal Construction, Aethon Developers, R Retail Ventures, R Mall Developers, and Histyle Retail.
  • The balance will be used for general corporate purposes.

The company may also consider a pre-IPO placement of up to ₹340 crore, which would reduce the fresh issue size.

IPO Structure

The issue will be made through the book-building process as per SEBI regulations:

  • Up to 50% reserved for Qualified Institutional Buyers (QIBs)
  • Not less than 15% for Non-Institutional Investors (NIIs)
  • At least 35% for Retail Investors (RIIs)

ICICI Securities, BOB Capital Markets, IIFL Capital Services, and JM Financial are the book-running lead managers, while MUFG Intime India Private Limited is registrar to the issue. Shares will be listed on BSE and NSE.

Company Overview

Incorporated in 1988, Runwal Developers is a prominent real estate brand in the Mumbai Metropolitan Region (MMR) and Pune, with a portfolio spanning residential, commercial, organized retail, and upcoming hospitality projects.

  • Ranked among the top 10 developers in MMR by residential units supplied (Jan 2022 – Mar 2025, Anarock Report).
  • Second-largest developer in Thane during the same period.
  • As of June 30, 2025:
    • 35 completed projects
    • 17 ongoing projects
    • 24 upcoming projects
  • Delivered 11.22 million sq. ft. of residential, commercial, and retail space.

Key Assets

  • Residential: High-value developments such as The Residence (Nepean Sea Road), Nirvana (Parel), Elegante (Andheri), The Reserve (Worli), and large multi-tower projects including 25 Hour Life and Runwal Lands End in Thane.
  • Retail: R City Mall in Ghatkopar – MMR’s largest Grade A mall with 1.23 million sq. ft. GLA and 97% occupancy as of March 31, 2025.
  • Commercial: R Square in Andheri with 1.18 million sq. ft. GLA.
  • Hospitality: Three hotels planned in Worli, Thane, and Pune.

Business Model & Strategy

Runwal Developers operates on a hybrid model combining:

  • Outright land purchases
  • Redevelopment of old housing societies (including SRA projects)
  • Joint Development Agreements (JDAs)

As of June 30, 2025:

  • 6 redevelopment projects (2.35 million sq. ft.)
  • 2 JDA projects (1.15 million sq. ft.)

The company follows an integrated real estate model with in-house capabilities across land acquisition, design, construction, marketing, and post-possession services.

Sustainability Focus

Runwal Developers integrates green practices like rainwater harvesting, sewage treatment, LED lighting, and smart infrastructure.

  • Operates an 8.20 MW solar plant in Osmanabad.
  • Commissioning two more solar plants (12 MW) in Amravati by FY26 to power commercial assets.

Financial Performance

  • FY23 Revenue: ₹301.9 crore | Net Profit: ₹42.3 crore
  • FY25 Revenue: ₹1,163.2 crore | Net Profit: ₹137.4 crore

This growth highlights its strong execution capabilities and expanding footprint.

Also Read: The Hive Hostels to Expand by 3,000 Beds and Digitalize Operations Ahead of IPO

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